Do cross-border e-commerce businesses need to pay taxes in China? What taxes should they pay?

With the expansion of cross-border e-commerce, more and more merchants are entering the cross-border e-commerce industry. However, if you want to enter the cross-border e-commerce industry, you must understand the relevant taxes. The most basic one is the tariff. Do cross-border e-commerce companies have to pay taxes domestically? Next, we will explain this aspect to you.

1. Do cross-border e-commerce businesses need to pay taxes in China?

Cross-border e-commerce must pay taxes, especially tariffs.

2. What taxes should be paid?

1. Import VAT

Import VAT refers to the VAT levied at the import stage, which is a circulation tax. Unlike general VAT, which is the taxable amount for production, wholesale, and retail, import VAT is a special VAT at the import stage. Amazon sellers make sales after paying import VAT to the authorities, and the actual VAT can be deducted from the import VAT (difference tax).

2. Import tariffs

Import tariffs are taxes levied by a country's customs on imported goods and merchandise. Amazon sellers are required to pay taxes to the customs of the target country before selling goods, including the value of the goods themselves and shipping costs, which cannot be refunded. The tax rate may range from 0%-20%, and the import tariff rate may be different for different countries and goods. If you arrange tax planning, try to buy in countries that have signed free trade agreements.

3. Income tax

Income tax refers to a tax levied by the state on various incomes collected by legal persons, natural persons and other economic organizations within a certain period of time. It is generally divided into corporate income tax and personal income tax. According to the actual operating profit adjustment and multiplied by different income tax rates, e-commerce sales personnel should pay corresponding income tax in the target country or countries according to the different nature of the subject (individual or enterprise).

4. Turnover tax/value added tax (GST)

Value-added tax is a tax payable after the sale of goods. Value-added tax refers to the flow tax levied on the value-added tax generated during the circulation of goods (including taxable services) as the tax standard. In the tax calculation principle, value-added tax is a flow tax levied on the added value of different parts of the production, circulation, and service of goods or the added value of goods. A high additional tax is imposed. In other words, consumers bear the value-added tax without value-added tax.

Cross-border e-commerce generally pays the above taxes. Merchants need to pay taxes in a timely manner. Do not pay late or not pay taxes. This will bring obstacles to the development of the store. To do cross-border e-commerce, merchants must optimize their stores, abide by platform rules, and improve their competitiveness!